Chinese stocks react positively despite service sector slowdown

Chinese stocks remain green on news of service sector slowdown

The Chinese stock market still recorded green in the morning session of June 3 after the news that the country’s service industry slowed down in May.

The Shanghai Composite Index gained 0.38% in the morning session of June 3. Photo: AFP

Opening the morning session of June 3, “red floor”, but mainland Chinese stocks quickly reversed and gained. The Shanghai Composite Index inched 0.38% to 3,610.67 while the Shenzhen Component also returned to the green with a gain of 0.45% to 14,925.07 points, although it previously recorded a decline of 0.323%.

On the Hong Kong market, the Hang Seng index dropped 0.28% to 29,215.48 points.

The results of a private survey released this morning showed that China’s service sector growth rate slowed down in May. The Caixin/Markit Purchasing Managers’ Index (PMI) in China’s service industry only reached 55.1 in May, lower than the 56.3 in April. A PMI above 50 reflects the industry/sector. growth during the survey period.

In the Japanese stock market, the Nikkei 225 index gained 0.4% while the Topix index gained nearly 1%. South Korea’s Kospi index gained 0.64%.

Australian stocks this morning continued to gain when receiving more positive information from the retail market. The S&P/ASX 200 index rose 0.73% after the Australian Bureau of Statistics reported that the country’s April retail sales rose 1.1% month-on-month, on a seasonally adjusted basis.

Before, Australian Bureau of Statistics yesterday announced Australia’s GDP in the first quarter of 2021 increased by 1.8% compared to the previous quarter. The growth beat expectations for a 1.5% increase given in a recent Reuters poll.

A representative of the Australian Bureau of Statistics assessed that, with a growth rate of 1.8% in the first quarter of 2021, Australia’s economic activity had recovered above pre-pandemic levels, when the Australian economy had grown at 1 1% for the whole year.

Overall, the MSCI Asia-Pacific index (excluding Japan) this morning still inched about 0.2%.

US stocks rose slightly last night. The Dow Jones Industrial Average closed up 25.07 points at 34,600.38 while the S&P 500 edged up 0.14% to 4,208.12. The tech-heavy Nasdaq Composite Index rose 0.14% to 13,756.33 points.

In the currency market, the US dollar index against other major currencies slipped to 89.916, after hitting 90.1. The Japanese yen remained weak this morning and traded at 109.64 JPY/USD, compared to 109.5 JPY/USD recorded at the beginning of the week, while the Australian dollar appreciated compared to yesterday and changed hands by 1 AUD. eat” $0.7742.

Oil prices traded in Asia this morning continued to rise. Brent crude futures were up 0.46% to trade at $71.68 per barrel while US crude futures were up 0.48% to $69.16 per barrel.